Question 282 of 1,170
Manage Azure Identities and GovernanceeasyMultiple SelectObjective-mapped

AZ-104 Manage Azure Identities and Governance Practice Question

This AZ-104 practice question tests your understanding of manage azure identities and governance. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.

Finance, HR, and Engineering each have their own subscriptions, and one production resource group must not be deleted by mistake. Which two Azure features should be used? Select two.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Create a management group for the subscriptions.

Option A is correct because a management group allows you to centrally manage governance, policy, and compliance across multiple Azure subscriptions. By placing the Finance, HR, and Engineering subscriptions under a single management group, you can apply Azure Policy or RBAC assignments that affect all subscriptions, ensuring consistent governance without needing to configure each subscription individually.

Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Create a management group for the subscriptions.

    Why this is correct

    Management groups are designed to organize subscriptions above the subscription level. They help apply consistent governance to groups of subscriptions such as Finance, HR, and Engineering.

    Related concept

    Read the scenario before looking for a memorised answer.

  • Apply a CanNotDelete lock to the production resource group.

    Why this is correct

    A CanNotDelete lock prevents accidental deletion while still allowing normal management tasks such as updates and scaling. It is the right balance when you want protection without blocking day-to-day administration.

    Related concept

    Read the scenario before looking for a memorised answer.

  • Assign Reader to everyone in the company.

    Why it's wrong here

    Reader access is about visibility, not organization or protection. Granting it broadly would not stop deletion and would also be too permissive for a production resource group.

    When this WOULD be correct

    In a scenario where the goal is to ensure all users can view resources but cannot make any changes (including deletion), and the company policy mandates read-only access for all employees, assigning the Reader role at the subscription or resource group level would be correct.

  • Use a distribution list for the subscriptions.

    Why it's wrong here

    Distribution lists are used for email delivery, not Azure governance. They cannot organize subscriptions or protect resources from deletion.

    When this WOULD be correct

    In a scenario where you need to notify a group of administrators about subscription-level events (e.g., budget alerts or policy violations) via email, using a distribution list as the action group's email recipient would be correct.

  • Move the resource group into a different region.

    Why it's wrong here

    A resource group is not moved for deletion protection, and region choice does not prevent accidental removal. The correct control for accidental deletion is a lock.

    When this WOULD be correct

    If the question asked how to reduce latency or comply with data residency requirements for a resource group, moving it to a different region would be correct. For example, 'You need to move a resource group to a region closer to users to improve performance.'

Option-by-option analysis

Why each answer is right or wrong

Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The AZ-104 exam frequently reuses these exact scenarios with slightly different constraints.

Create a management group for the subscriptions.Correct answer

Why this is correct

Management groups are designed to organize subscriptions above the subscription level. They help apply consistent governance to groups of subscriptions such as Finance, HR, and Engineering.

Assign Reader to everyone in the company.Wrong answer — click to see why

Why this is wrong here

Assigning Reader to everyone in the company would not prevent deletion of the resource group; it only restricts modifications but allows deletion. Also, it violates least privilege by granting broad read access.

★ When this WOULD be the correct answer

In a scenario where the goal is to ensure all users can view resources but cannot make any changes (including deletion), and the company policy mandates read-only access for all employees, assigning the Reader role at the subscription or resource group level would be correct.

Why candidates choose this

Candidates may think that restricting permissions (Reader) prevents deletion, but they overlook that Reader still allows deletion unless a lock is applied. They also may confuse RBAC roles with resource locks.

Use a distribution list for the subscriptions.Wrong answer — click to see why

Why this is wrong here

A distribution list is used for email distribution, not for managing Azure subscriptions or preventing resource deletion. It does not provide any governance or locking capabilities.

★ When this WOULD be the correct answer

In a scenario where you need to notify a group of administrators about subscription-level events (e.g., budget alerts or policy violations) via email, using a distribution list as the action group's email recipient would be correct.

Why candidates choose this

Candidates may confuse distribution lists with management groups or Azure AD groups, thinking they can organize subscriptions or control access, but distribution lists are purely for email communication.

Move the resource group into a different region.Wrong answer — click to see why

Why this is wrong here

Moving a resource group to a different region does not prevent accidental deletion; it only changes the location of the resources. The question requires preventing deletion, not relocation.

★ When this WOULD be the correct answer

If the question asked how to reduce latency or comply with data residency requirements for a resource group, moving it to a different region would be correct. For example, 'You need to move a resource group to a region closer to users to improve performance.'

Why candidates choose this

Candidates may think that moving a resource group to a different region somehow protects it from deletion, confusing regional boundaries with access control or protection mechanisms.

Analysis generated from the official AZ-104blueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates often confuse RBAC roles (like Reader) with resource locks, thinking that restricting permissions alone prevents deletion, but locks are required to explicitly block delete operations regardless of permissions.

Detailed technical explanation

How to think about this question

A CanNotDelete lock is an Azure resource lock that prevents any user or process from deleting the resource group, even if they have Contributor or Owner permissions. This lock overrides RBAC permissions at the resource level, and it can be applied at the subscription, resource group, or individual resource scope. Management groups support hierarchical governance, allowing you to apply Azure Policy initiatives (e.g., requiring a lock on all production resource groups) across multiple subscriptions, which is critical for enterprise-scale environments with separate departmental subscriptions.

KKey Concepts to Remember

  • Read the scenario before looking for a memorised answer.
  • Find the constraint that changes the correct option.
  • Eliminate answers that are true in general but not in this case.

TExam Day Tips

  • Watch for words such as best, first, most likely and least administrative effort.
  • Review why wrong options are wrong, not only why the correct option is correct.

Key takeaway

Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.

Real-world example

How this comes up in practice

A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.

Quick reference

Access Control Model Comparison

ModelAcronymWho Controls Access?Best For
Discretionary Access ControlDACResource ownerSmall teams, file shares
Mandatory Access ControlMACSystem / security labelsClassified govt / military
Role-Based Access ControlRBACAdministrator (via roles)Enterprise environments
Attribute-Based Access ControlABACPolicy engine (user + resource attributes)Fine-grained, dynamic policies
Rule-Based Access ControlRuBACSystem rules / ACLsFirewall rules, network ACLs

What to study next

Got this wrong? Here's your next step.

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FAQ

Questions learners often ask

What does this AZ-104 question test?

Manage Azure Identities and Governance — This question tests Manage Azure Identities and Governance — Read the scenario before looking for a memorised answer..

What is the correct answer to this question?

The correct answer is: Create a management group for the subscriptions. — Option A is correct because a management group allows you to centrally manage governance, policy, and compliance across multiple Azure subscriptions. By placing the Finance, HR, and Engineering subscriptions under a single management group, you can apply Azure Policy or RBAC assignments that affect all subscriptions, ensuring consistent governance without needing to configure each subscription individually.

What should I do if I get this AZ-104 question wrong?

Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.

What is the key concept behind this question?

Read the scenario before looking for a memorised answer.

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Last reviewed: Jun 11, 2026

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